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Retroactive termination of employee benefit plans

October 20, 2015

Don’t believe everything you read on the Internet!

Lately I’ve written that the general rule is that you can not retroactively terminate or amend an employee benefit plan but that under certain circumstances it may be better to do so than not. This is not a topic that lends itself well to a blog post. Rather, every situation is different and this is a question that should be “talked through” with your accountant who will ultimately be on the line to defend the position taken. In this instance it may be more important to consider the explanation and supporting narritive than the resulting action that your business takes.

More information on this topic is available at https://www.irs.gov/irm/part7/irm_07-012-001.html#d0e629

 

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